Announcements

    Drinks

      The Wide Angle – Why low equity valuations persist for European banks: the view of a credit analyst
      TUESDAY, 11/07/2023 - Scope SE & Co. KGaA
      Download PDF

      The Wide Angle – Why low equity valuations persist for European banks: the view of a credit analyst

      European banks display reassuring financial fundamentals, the likes of which have not been seen in decades. Yet many shares trade at deep discounts to book value despite sell-side Buy recommendations.

      Beyond the fact that he does not believe price-to-tangible-book-value should be used as a core performance metric for bank shares, Sam Theodore says many investors paint the European banking sector with a broad brush, skipping the often-significant differences in quality and outlook between various banks or national banking systems and anchoring their views in the performance of the sector’s negative outliers across the years.

      Investors are looking for growth indicators to boost bank valuations but in a mature industry like banking, growth can come attached to higher risks.

      Read the latest The Wide Angle here.

       

      Related news

      Show all
      Scope affirms JSC Silk Bank ‘B-’ issuer rating with Stable Outlook

      28/5/2025 Rating announcement

      Scope affirms JSC Silk Bank ‘B-’ issuer rating with Stable ...

      Scope puts Brage Finans’ ratings under review for upgrade

      28/5/2025 Rating announcement

      Scope puts Brage Finans’ ratings under review for upgrade

      Scope affirms Danske Bank’s issuer rating at A+ and assigns Positive Outlook

      27/5/2025 Rating announcement

      Scope affirms Danske Bank’s issuer rating at A+ and assigns ...

      Italian Bank Quarterly: banks well positioned to weather economic headwinds

      20/5/2025 Research

      Italian Bank Quarterly: banks well positioned to weather ...

      European bank operating environments 2025: resilient picture despite macro and trade uncertainties

      19/5/2025 Research

      European bank operating environments 2025: resilient picture ...

      Updated rating report on Deutsche Bank

      16/5/2025 Monitoring note

      Updated rating report on Deutsche Bank